Stock markets in US and Europe getting clobbered

Everyone knows Greece will default. And everyone knows BofA is on its last legs.

But no one really knows where the risk is with their trading partners. For example, banks routinely loan each other money overnight. But now they’re getting nervous about the health of those they loan to. Ditto for credit default swaps, which are private quasi-insurance agreements for large sums. Would you want to buy one from BofA now? Didn’t think so.

It’s 2008 all over again. Expect a Lehman Brothers type event. Except this time it will be a country or very large banks.